ACRE

Ares Commercial Real Estate
ACRE

$7.37

5.63%

Market Cap: $402M

About: Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. It operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.

Employees: 2,100

Financials Real Estate Investment Trusts

0

Funds holding %

of 6,728 funds

–

Analysts bullish %

Fund manager confidence

Based on 2024 Q2 SEC filings by fund managers ($100M+ AUM)

27% more repeat investments, than reductions

Existing positions increased: 56 | Existing positions reduced: 44

3.35% less ownership

Funds ownership: 44.76% [Q1] → 41.41% (-3.35%) [Q2]

11% less funds holding

Funds holding: 154 [Q1] → 137 (-17) [Q2]

18% less capital invested

Capital invested by funds: $184M [Q1] → $151M (-$33.4M) [Q2]

43% less first-time investments, than exits

New positions opened: 23 | Existing positions closed: 40

74% less call options, than puts

Call options by funds: $559K | Put options by funds: $2.17M

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Research analyst outlook

1 Wall Street Analyst provided 1 year price targets over the past 3 months

Low target

$7

5%

downside

Avg. target

$7

5%

downside

High target

$7

5%

downside

1 analyst rating

0 positive

0%

0 neutral

0%

1 negative

100%

Wells Fargo

Donald Fandetti

76% 1-year accuracy

19 / 25 met price target

5%downside

$7

Underweight

Downgraded

20 Sept 2024

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Financial journalist opinion

The High Yield Desert

I frequently discuss high-yield sectors like mortgage REITs, BDCs, and preferred shares, emphasizing the importance of knowing when not to buy. Preferred shares have rallied above targets, reducing buying opportunities, while common shares offer higher risks. Some offer upside, but others mostly offer downside. I'll kick off the weekend by highlighting one with a high valuation, as investors pay top dollar for earnings that are about to melt away.

The High Yield Desert

Ares Commercial Real Estate: 14% Undercovered Yield, But There Is Hope

Ares Commercial Real Estate reported negative distributable earnings for the second consecutive quarter due to loan sales below book value, impacting profitability and book value. Despite ongoing loan issues, Ares declared a $0.25 per share dividend for 3Q24, reflecting management's confidence in a potential earnings rebound. The stock trades at a 34% discount to book value, suggesting that concerns about dividend cuts are already priced in.

Ares Commercial Real Estate: 14% Undercovered Yield, But There Is Hope

24/7 Wall Street

Want $13,500? Check Out These High Dividend REIT Stocks

24/7 Wall Street Insights Real estate is a tried and true asset class for passive income wealth building, but the high entry price can eliminate those with limited liquid investment capital.

Want $13,500? Check Out These High Dividend REIT Stocks

10% Or Higher Dividend Yields

BDCs, mortgage REITs, preferred shares, and one baby bond. Most are yielding over 10%. I hope you're ready for the weekend. We're going to do quick coverage on each share. Some of these preferred share and baby bond combinations appear to be slightly mispriced.

10% Or Higher Dividend Yields

Ares Commercial: High Risk Of A Second Dividend Reset

Ares Commercial Real Estate faces challenges in its loan portfolio, leading to realized losses from loan sales. The REIT's CECL reserve increased due to continual loan issues, particularly in the troubled office sector. Weak distributable earnings performance going forward may result in a second dividend cut.

Ares Commercial: High Risk Of A Second Dividend Reset

Ares Commercial: Another Big Loan Goes On Non-Accrual

Ares Commercial Real Estate Corporation cut its distribution within two weeks of our initial coverage, resulting in negative total returns. Q2-2024 results showed significant losses, with non-accrual loans and a decreasing net interest margin contributing to financial struggles. We tell you what the sustainable distribution level is for the firm, assuming everything goes right.

Ares Commercial: Another Big Loan Goes On Non-Accrual

Zacks Investment Research

Ares Commercial Real Estate (ACRE) Reports Q2 Earnings: What Key Metrics Have to Say

While the top- and bottom-line numbers for Ares Commercial Real Estate (ACRE) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Ares Commercial Real Estate (ACRE) Reports Q2 Earnings: What Key Metrics Have to Say

Zacks Investment Research

Ares Commercial Real Estate (ACRE) Reports Q2 Loss, Misses Revenue Estimates

Ares Commercial Real Estate (ACRE) came out with a quarterly loss of $0.12 per share versus the Zacks Consensus Estimate of $0.19. This compares to earnings of $0.35 per share a year ago.

Ares Commercial Real Estate (ACRE) Reports Q2 Loss, Misses Revenue Estimates

Ares Commercial Real Estate Corporation Reports Second Quarter 2024 Results

NEW YORK--(BUSINESS WIRE)--Ares Commercial Real Estate Corporation (the “Company”) (NYSE:ACRE), a specialty finance company engaged in originating and investing in commercial real estate assets, reported generally accepted accounting principles (“GAAP”) net income (loss) of $(6.1) million or $(0.11) per diluted common share and Distributable Earnings (Loss)(1) of $(6.6) million or $(0.12) per diluted common share for the second quarter of 2024. “We continued to make progress on resolving risk r.

Ares Commercial Real Estate Corporation Reports Second Quarter 2024 Results

Bashing Big Yielders

Dividends need to be sustained to create value. We're highlighting a company that regularly falls short. I made some mistakes many years ago and I want to address them so we can all learn from them.

Bashing Big Yielders

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